When you agree to be a cosigner for someone else’s debt, you are guaranteeing to pay the debt if the primary borrower fails to pay the debt. Think carefully whenever you cosign a contract because you may have to pay the full amount of the debt if the primary borrower does not pay even if they go through bankruptcy. Additional late fees, collection costs, repossession fees are also guaranteed by you when you cosign.

Example: You cosign a car loan with your child because they do not have the credit score needed to get the loan. A year down the road, the car is repossessed and there is a collection company calling you now for the remaining balance of the car. This is the first you will probably hear about the situation. You now have a repossession and a collection reporting and your scores have dropped 100 points. As a cosigner you are responsible for all balances and charges pertaining to that car loan.

The threat of identity theft never goes away — even on vacation. This year while taking time to relax, remember to follow these identity theft tips to avoid an unpleasant surprise when you get back home.

Tip #1 — Stop Your Mail

Thieves love your mail. Finding mailboxes stuffed while homeowners are away vacationing is like a dream come true for identity thieves. With the information found in your mailbox from everything from bills to credit card offers, thieves can piece together enough info about you to steal your identity.

Your first step to avoid identity theft while you’re on vacation is to have a neighbor pick up your mail or put a ‘stop’ on it at your post office.

Tip #2 — Beware of WiFi Hotspots

Most people take along a laptop while on vacation either to spend some leisurely time surfing the net or to keep in touch with family while they’re away from home. But before you go online, you need to be aware that most WiFi hotspots are unsecured and unencrypted. This means that others can see what you’re doing online. Go online only if you’re sure your connection is protected.

Tip #3 — Choose Your ATMs Carefully

Vacationers are carefree and having fun — the way they should be. Thieves know this and take the opportunity to steal your money or identity while you’re distracted. One of the most common places they do this is at ATMs.

You’re distracted. The kids see something fun they want to do. You run to the nearest ATM to get some money. This convenient ATMs are where thieves plant skimmers that can steal your information in a matter of seconds.

To avoid this from happening, go to ATMs at banks or credit unions. These ATMs are monitored and safer than those found in shopping malls or convenience stores.

Tip #4 — Take Stock of Your Wallet

In the event that you lose your wallet or purse or is stolen, the first thing a thief is going to go for is your personal information. Before you leave home make a copy of everything you keep in your purse or wallet: credit cards, social security card, driver’s license, insurance card, etc.

This way, if you do lose your information, you know exactly what you’ve lost and can cancel all cards immediately.

Remember it’s never smart to carry your social security card in your wallet. Leave it locked up at home. If you’re traveling with a spouse, it’s best if you each have a credit card. If one card is disabled or damaged, you’ll still have access to credit.

Tip #5 — Don’t Be to Sociable

Everybody is on some social network or another these days. You might be excited about leaving for vacation, but don’t post it on Facebook, MySpace or any other networking site. Thieves troll these areas to see when people are away from home and possibly break into their home while they’re away.

Vacationing should be a fun time — not a time spent worrying about theft. By following these tips, you’ll be able to relax knowing you’ve done your best to prevent identity theft.

Their top nominations for the the WORST credit cards are….drumroll please….

Macy’s Card

Cards offered by retailers and specialty stores are usually a bad deal, but Macy’s still manages to stand out.

“Almost without fail, (retail) cards charge exorbitant interest rates. The worst offender I know of is the Macy’s credit card, with its 23.99% interest rate,” McHenry said, “but cards from J.C. Penney, American Eagle Outfitters, Gap, Brooks Brothers, J. Crew and Dillard’s all come in at rates over 20%.”

Many people apply for retail cards to get a discount on their purchases, typically 10% to 20% off. But you can often get the same benefits and a better overall deal by applying for a store card that’s affiliated with a major credit card brand.

“If you really want a store credit card, try to get a store card associated with Visa, MasterCard or American Express — those cards generally have interest rates lower than the store-only credit cards,” McHenry said. “For example, I just got a Banana Republic Visa with an interest rate of 14.24%. Compare that to Banana Republic’s store-only card, which charges a rate of 21.9%.”

Money Return Platinum Plus Visa from Bank of America

If you pay your balance in full, cards that offer cash rebates are usually a terrific deal… Not this one.

Oh, the terms look sweet at first: no annual fee, 0% for six months on balance transfers and a whopping 10% cash rebate.

You get the 10% cash back, however, only if you carry a balance. And the annual percentage rate for carrying a balance ranges from 9.99% to 19.99%.

“So you pay up to almost a 20% APR to earn (back) only 10% of your interest that you pay out of your pocket,” said Arnold, of CardRatings.com. “Doesn’t take a math genius to figure out that this is a lose-lose proposition.”

Call For A Free Consulation

888-881-5333

If you're serious about discussing ways you can improve your credit score, we're here to help. Our credit specialists are experienced, friendly, and will help you determine the best course of action to achieve your goals — all at no obligation or cost to you.